Posted on 10/01/2008 10:07:59 AM PDT by NVDave
(Tempe, Arizona) — Economic activity in the manufacturing sector failed to grow in September, while the overall economy grew for the 83rd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
The report was issued today by Norbert J. Ore, C.P.M., chair of the Institute for Supply Management™ Manufacturing Business Survey Committee. "The PMI indicates a significantly faster rate of decline in manufacturing during September, marking a departure from the 2008 trend toward negligible growth or contraction each month. This is the lowest level for the PMI since October 2001. This month's report is showing prices rising at a much slower rate, as the Prices Index fell to the lowest level in 21 months. Export orders continued to increase, but at a slower rate than in August."
The speed of the downturn (and the breadth of the miss vs. estimates/models) is, in itself, cause for worry.
You can see the results in the materials and heavy equipment sector over the last month. Earnings estimates or 2009 are being pulled down quickly, and now many analysts are wondering if the estimates are coming down quickly enough.
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